Reuben Garner's questions to STEELCASE (SCS) leadership • Q2 2026
Question
Reuben Garner from The Benchmark Company sought clarification on the impact of Steelcase's pricing actions, specifically whether they have fully offset inflation and tariff costs on a cumulative basis and how much more flow-through is expected. He also asked about the cadence of Americas' order patterns during the quarter and the start of the next quarter, and any notable changes in office design mix for project-oriented, large customer, return-to-office initiatives compared to previous periods.
Answer
CFO Dave Sylvester clarified that while Q2 pricing benefits offset year-over-year inflation and tariffs, the company is still cumulatively catching up due to tariffs hitting immediately and pricing lagging. He anticipates another couple of quarters to fully recover margins on these costs. Sylvester also noted that Americas' order patterns were evenly spread across the quarter, with the first three weeks of the next quarter being roughly flat year-over-year. CEO Sara Armbruster added that customers are increasingly rethinking space to support strategic goals, incorporating new concepts like privacy, collaboration, and technology integration, moving beyond pre-COVID norms.